Barclays lowers India's FY14 growth forecast to 4.7%

September 27, 2013 12:52 IST

Barclays has lowered India's FY14 gross domestic product forecast for the current fiscal to 4.7 per cent, saying the growth and fiscal health of the country are likely to remain under pressure, with 2014 election dynamics adding to uncertainties.

India's economic growth had slumped to decade low of 5 per cent in 2012-13.

It had slid to 4.4 per cent during April-June quarter, the lowest in past several years, pulled down by drop in mining and manufacturing output.

According to the global financial services major, the broader trend in manufacturing and mining remains sluggish and the likely elevated-for-longer interest rate trajectory is also emerging as another headwind for industrial growth.

Moreover, the country's fiscal health is once again coming under pressure and the upcoming national elections (around April-May 2014) are another source of potential uncertainty for the economy

and is likely to be a headwind against a revival of the investment cycle.